LOC 2 AC 2 - Network Analysis For Management & Production

Crash Cost vs Crash Time Sometimes contract duration is reduced in such a way when there is a requirement to increase the productivity of resources, i.e. labour, plant, etc. to execute the work within the compressed time. There are known as direct costs. At the same time, since the contract will be completed sooner there will be a saving in overhead costs, i.e. rent, rates, management, salaries, insurances, etc. These are indirect costs and will reduce with a shortened contract time. A contract should not be speeded up blindly. There is an optimum time cost relationship. For each activity on the critical path the crash cost, crash time and normal cost should be ascertained. Formula : cost slope = (crash cost normal cost) / (normal time crash time) Resource scheduling There is always a conflict of demand among resources required for construction work. Resource allocation is a means of determining within the constraint of the float available an optimum combination of activity schedules which will best achieve contract completion. By rescheduling activities within certain limits it may be possible to reduce the peak demand. The aim is to achieve a reasonably constant demand for a particular resource during construction. Example:
No. Activity A B C D E
14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

weeks Duration 2 4 2 2 4

No. persons weeks Predecessor Resource No. Early Start Early Finish Late Start Late Finish None 3 0 2 0 2 A 8 2 6 2 6 B 2 6 8 6 8 A 6 2 4 6 8 C,D 8 8 12 8 12

Float 0 0 0 4 0

D B A 1 2 3 4 5 6 7 E

C 8 9 10 11 12

Earliest start time for D Latest finish time for D Resource Requirment Graph

CLASSROOM EXERCISE CRITICAL PATH ANALYSIS

Question 1 SINGLE STOREY HOUSE CONSTRUCTION PROJECT Activity A B C D E F Description Excavation Foundation Beam and Construction Wall Construction Framework Roofing Predecessor A A B,C C D,E Duration (weeks) 1 2 2 3 1 2 Resource No. 2 3 1 2 2 4

Column

Prepare (1) Gantt Chart (2) Critical Path Method Activity A B C D E F Normal Duration (week) 1 2 2 3 1 2 Crash Duration (week) 1 1 1 2 1 1 Normal Cost (RM) 3000 2500 1000 2000 2000 2800 Crash Cost (RM) 3000 4000 2500 3000 2000 4000

Prepare cost slope to determine the optimum activity(ies) to be crashed. Question 2 SHOPLOT CONSTRUCTION PROJECT Activity A B C D E F G H I J K L M N O Predecessor None A A B B C D E F G H I L J,K M,N Labour No. 2 3 1 4 1 4 None 1 3 3 1 3 2 2 2 Duration week Normal Crash 3 2 4 3 1 1 2 2 5 3 3 2 2 1 3 2 2 2 3 2 4 3 1 1 1 1 4 2 3 2 Cost Normal 3000 2800 1000 4000 3600 2200 2500 1800 2000 3000 1800 1000 2000 500 1800 Crash 3500 3200 1000 4000 4800 2500 3000 2400 2000 4000 2200 1000 2000 1200 2300

Prepare (1) Critical Path / Precedence Diagram (2) Gantt Chart (3) Labour resource chart (4) Cost slope and priority to crash for each activity

(Answer : 26 days) (Answer : Max. 5 persons)

Classroom Exercise - Question 2 (Optimum Resource Allocation) (A) Modified Gantt Chart - Labour Resource Allocation Activity A B E H K N O C D F G I J L M 1 2 3 4 5 6 7 8 9 10 11 Duration - weeks 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

(B) Resource Allocation Graph 8 7 6 5 4 3 2 1 0

No of Resource - Labour

Non-critical

Critical

I F C A 1 2 3 4 5 B 6 7 8 9 E 10 D L J

F C K 16 17 18 19 20

I N 21

M O

M 11

H 12 13 14 15 Duration - weeks

22

23

24

25

26

(C)

Optimum Resource Allocation Computation Statement Duration - weeks 12 13 14 15

Activity A B E H K N O C D F G I J L M Total

1 2

2 2

3 2

4 3

5 3

6 3

7 3

10

11

16

17

18

19

20

21

22

23

24

25

26

1 1 1 1 1 1 1 1 2 2 2 2 2 2 2

1 4

1 4

1 4

1 4 4 3

1 4 4 3

1 4 4 0 3 3

1 4 4 0 3 3 2 18

1 4 4 0 3 3 3 2 21

1 4 4 0 3 3 3 2 21

1 4 4 0 3 3 3 2 21

1 4 0 3 3 3 2 17

1 4 0 3 3 3 2 17 4 3 3 3 2 16 4 3 3 3 2 16 4 3 3 3 2 16 3 3 2 10 3 3 2 10 3 2 7

2 4 2 2 2

13

13

16

Activity A B E H K N O C D F G I J L M Total No of Resource - Labour

1 2

2 2

3 2

4 3

5 3

6 3

7 3

10

11

Duration - weeks 12 13 14 15

16

17

18

19

20

21

22

23

24

25

26

1 1 1 1 1 1 1 1 2 1 2 2 2 2 2 2

4 4 0 4 0 4 0 0 3 0 3 0 3 0 3 3 3 2

(D) Resource Allocation Graph - Optimized 8 7 6 5 4 3 2 1 0

C D A 1 2 3 4 5 B 6 7 8 9 E 10 11 12 13 H 14 K 15 16 17 18 19 20 21 F G J L M N 22 23 24 O 25 26

(KIV) LEARNING OUTCOME 1 LINEAR PROGRAMMING METHOD FOR CONSTRUCTION MANAGEMENT & PRODUCTION (AC 3)
SIMPLEX METHOD Since most realistic application of linear programming involve far more than 2 variables, there is a need for a solution procedure other than the graphical methods, called simplex method. The simplex method is an algebraic procedure for solving systems of equations where an objective function is optimized. It is an iterative process, which identifies a feasible starting solution. The procedure then searches to see whether there exists a better solution. Better is measured by whether the value of the objective function can be improved. If a better solution is signalled, the search resumes. The generation of each successive solution requires solving a system of linear equations. The search continues until no further improvement is possible in the objective function. Requirement of Simplex Method (1)All constraints must be stated as equations. (2)The right side of a constraint cannot be negative. (3)All variables are restricted to non-negative values. (1) All constraints must be stated as equations (a) Case 1 ( Constraint) A slack variable (S) is added to the left side of the constraint. ( 2x1 + 3x2 50 2x1 + 3x2 + S1 = 50) (b) Case 2 ( Constraint) A surplus variable (E) and an artificial variable (A) is added to the left side of the constraint. (x 1 + x2 25 x1 + x2 E1 + A1 = 25) (c) Case 3 ( = Constraint) A artificial variable (A) is added to the left side of the constraint. Rules of Simplex Method (a)Optimally check in Maximization Problem The optimal solution has been found if all row (0) coefficients for the variables are greater than or equal to 0. If any row (0) coefficient for the variables are negative for non-basic variables, a better solution can be found by assigning a positive quantity to these variable.

(b)New basic variable in Maximization Problem The non-basic variable which will replace a basic variable is the one having the most negative row (0) coefficient. (c) The basic variable to be replaced is found by determining the row I associated with min (bi/aik), which is the maximum number of units that can be introduced of the incoming basic variable. Summary of Simplex Procedure For maximization case (1)Add slack variable (S) to each constraint and the objective function, and place the variable coefficient and right-hand side constants in a simplex tableau. (2)Identify the initial solution by declaring each of the slack variables as basic variables. All other variables are non-basic in the initial solution. (3)Determine whether the current solution is optimal by applying rule 1(0). If it is optimal, stop ! If it is not optimal proceed to step 4. (4)Determine the non-basic variable which should become a basic variable in the next solution by applying rule 2 (max (-) coefficient in row(0)). (5)Determine the basic variable which should be replaced in the next solution by applying rule 3, (min b i / aik ratio where aik > 0) (6)Apply the guassian elimination operation to generate the new solution (or new tableau). Go to step 2.

Given,

maximize Subject to
key column x2 -6 2 6

z = 5x1 + 6x2 3x1 + 2x2 120 4x1 + 6x2 260

S1 0 1 0 S2 0 0 1 bi 0 120 260 Row No. bi/x2 R's R' 0 = R0 + 6R' 2 0 R' 1 = R1 - 2R' 2 1 =120/2 = 60 =260/6 = 43.33 R' 2 = 1/6 R2 2

Table 1-1 Basic Variable S1 S2 - D

z 1 0 0

x1 -5 3 4

to 0 to 0 to 1 (Starter)

Table 1-2 Basic

z = 1 + 6(0) Variable = 1 = 0 - 2(0) S1 - D = 0 = 0 x 1/6 S2 to x2 = 0

x1 x2 = -5 + 6(2/3) = -6 + 6(1) = -1 =0 = 3 - 2(2/3) = 2 - 2(1) = 5/3 =0 = 4 x 1/6 = = 6 x 1/6 2/3 =1 key column

S1 S2 = 0 + 6(0) = =0+6(1/6) 0 =1 = 1 - 2(0) = = 0-2(1/6) 1 = -2/3 = 0 x 1/6 = = 1 x 1/6 0 = 1/6

bi Row No. =0+260/6(6) =260 0 =120-2(260/6) = 33.33 1 = 260 x 1/6 = 43.33 2

bi/x1

R's R'' 0 = R' 1 + R" 1 to 0

=33.33 x 3/5 = 20 =43.33 x 3/2 = 65

R'' 1 = 3/5 x R' 1

to 1 (Starter)

R'' 2 = R'2 - 2/3R'' 1 to 0

Table 1-3 Basic

z = 1 + 6(0) Variable = 1 = 3/5 x 0 S1 to x1 = 0 = 0-2/3(0) =0 x2 Answer z = 280

x1 = -1 + 1 =0 = 3/5 x 5/3 =1

S2 bi Row No. bi/x = 1 + -2/5 = 260 + 20 All positive = 3/5 = 280 (settled) 0 = 3/5 x -(2/3) = -= 3/5 x -(33.33) 2/5 = 20 1 = 2/3-2/3(1) = 1 -2/3(0) = 0 -2/3(3/5) = 1/6 -2/3(-2/5) = 43.33 -2/3(20) =0 =1 = -2/5 = 13/30 = 30 2 x1 = 20 x2 = 30

x2 S1 =0+0 = 0 + 3/5 =0 = 3/5 = 3/5 x 0 = = 3/5 x 1 0 = 3/5

R's

Questions

1. Given, Maximize Subject to

z = 2x1 + 12x2 + 8x3 2x1 + 2x2 + x3 100 x1 2x2 + 5x3 80 10x1 + 5x2 + 4x3 300

(Answer : x1 = 0, x2 = 35, x3 = 30, S1 = 0, S2 = 0 and S3 = 5)

2. Estimate the optimum / maximum profit for the construction of 3 types of houses as below due to the limited resources: Housing Type Labour A Labour B Labour C Profit Margin (hrs) (hrs) (hrs) (RM/unit) X 30 40 60 3000 Y 20 50 30 2200 Z 40 20 50 2800 Limited hours offered monthly 1200 hours for Labour A 1600 hours for Labour B 2400 hours for Labour C